Solar Panels Installation

Previously Victorians Households were given as much as 60 cents/kWh before the Coalition State Government amended the tariff decision in 2012. Photo: Ecogeneratin Australia

Residences in Victoria with rooftop solar PV might receive not less than 5 cents/kWh for the electricity they supply to the grid by 2016. This decision is proposed by the state’s Essential Services Commission.

This idea will cut 1.2 cents from the recent minimum feed-in-tariff, with the stating that the rate corresponds to the lower wholesale electricity market prices forecasted in 2016.

More than 250, 000 small-scale solar PV systems have been installed in Victoria, and more than 10% of Victorian residences currently have solar photovoltaic installed.

Under the state feed-in-tariff Victorians were once given as much as 60 cents/kWh under a significantly subsidised model.

But this tariff decision was amended by the previous Coalition state government in 2012 for newcomers. The Essential Services Commission has set now proposed a minimum price that retailers must give to their customers for their excess solar power, which related to the wholesale electricity market rates.

The commission states that the decision which will be fully implemented in 2016 “is due to a lower forecast wholesale market price of electricity, particularly during daylight hours when PV electricity is generating.”

Lily D’Ambrosio,State Energy Minister stated the current arrangements for the feed-in-tariff would continue until the end of 2017.

“We have committed to undertaking a review of feed-in-tariff arrangements which will commence in the second half of this year,” Lily D’Ambrosio stated.

“The government will also ask the [commission] to inquire into the true value of distributed generation to the grid.”

Damien Moyse from the Alternative Technology Association stressed that he believed not all the benefits of solar power were being considered in how the feed-in-tariff was being set. “These benefits included reduced transmission costs and a suppression effect on wholesale prices,” he said.

He said the Association thought that once these were included, the tariff should be over 10 cents. But he said moving to this rate would probably only take a year or so off the time it would take for a household to pay back the cost of a solar system in reduced power bills and money they get for excess power.


Tom A., June 2, 2015. Victorian solar electricity feed-in-tariff set to be cut for 2016:



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